Automobile Industry in India

Automobile Industry in India

With a scintillating 2.3 million units produced in 2008 the Indian automobile industry bagged the position of being the ninth largest in the world. Following economic liberalization, Indian domestic automobile companies like Tata Motors Maruti Suzuki and Mahindra and Mahindra expanded their production and export operations in and across the country and since then the industry has only shown signs of growth. The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors), passenger cars, and two-wheelers.

The Indian automobile industry seems to come a long way since the first car that was manufactured in Mumbai in 1898. The automobile sector today is one of the key sectors of the country contributing majorly to the economy of India. It directly and indirectly provides employment to over 10 million people in the country. The Indian automobile industry has a well established name globally being the second largest two wheeler market in the world, fourth largest commercial vehicle market in the world, and eleventh largest passenger car market in the world and expected to become the third largest automobile market in the world only behind USA and China.

The growth of the Indian middleclass along with the growth of the economy over the last few years has resulted in a host of global auto giants setting their foot inside the Indian Territory. Moreover India also provides trained manpower at competitive costs making the country a manufacturing hub for many foreign automobile companies. India proves to be a potential market as compared to most of the other countries which are witnessing stagnation as far as automobile industry growth is concerned.

A recent research conducted by the global consultancy firm Deloitte says that at least one Indian automobile company will feature among the top six automobile companies that will dominate the car market by 2020.

The Indian automobile industry proved to be in good shape last year even after the economic downturn. This was majorly due to the fact of renewed interest shown by global automobile players like Nissan Motors which consider India to be a potential market.

As far as authorized dealer networks and service stations are concerned Maruti Suzuki is the most widespread. The other automobile companies are also showing rapid progression in this field.

Indian Automobile Export market

India is a very favorable market for small cars be it production, sales or export.
Since the Indian automobile industry is the largest manufacturer of small cars companies like Hyundai and Nissan Motors export about 2,40,000 and 2,50,000 annually. India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Indian automobile exports registered a 22.30 percent growth in the year 2009. The growth trend was as follows: Two Wheelers- 32.31 percent, Commercial Vehicle - 19.10 percent and Passenger Cars grew by - 19.10 percent.

Key automobile manufactures in India

Maruti Udyog

General Motors

Ford India Limited

Eicher Motors

Bajaj Auto

Daewoo Motors india

Hero Motors

Hindustan Motors

Hyundai Motors India Limited

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Limited

Indian Automobile Industry Growth 2009

Gaining from Government stimulus packages, more demands and lower interest rates on automobile loans the Indian automobile industry witnessed a phenomenal growth of 26.41 per cent in the year 2009. Segment wise cars posted a growth of 25.10 percent and two wheelers sales grew by 26 percent. The year 2009 actually turned out to be one of the best years in the history of the automobile industry in India. If the trend continues the same way then Indian will soon become the second fastest growing automobile market in the world only after China.